There are many occasions when a goodwill valuation is needed, for example:

  • when there is a change in ownership, a partner retiring or joining
  • if the business is incorporating
  • for business planning purposes
  • when a new shareholder is joining a limited company
  • if you plan to sell your practice and retire, and need to work out how much you will have to live on in retirement

We are highly experienced at calculating goodwill in the current veterinary marketplace, and we can help you work it out. But beyond that, we can also make sense of it – and show you how you could improve the goodwill on your business.

Imagine a practice is for sale. The property is worth £300K and the equipment £20K, so net worth is £320K. If the profit is is £200K per annum a purchaser will pay more than the net asset value, and the difference is goodwill. But goodwill can be confusing, and what it’s worth even more confusing. Why, for example, is goodwill shown on the balance sheet in limited companies and then written off when the business is doing well? We can answer your questions.